What is a Forbearance?
Student loan forbearance is an authorized temporary suspension of repayment that is granted under certain circumstances. Forbearance differs from deferment in that most forms of forbearance are offered at the discretion of the lender or owner of your loans. While all loans in the Federal Family Education Loan Program (FFELP) and a significant number of private loans allow forbearance in a wide variety of circumstances, it is not granted automatically nor is it guaranteed. You must apply, meet the qualifications, and make arrangements with the servicer of your loans.
You remain responsible for paying the daily interest accrual for all loan types during periods of forbearance.
Page Updated: 08-Nov-2012